Brussels extends tariff suspension with Ukraine to ease farm protests
Continuing agricultural demonstrations in the main European capitals have put Brussels in danger. The Belgian capital is the protagonist of a new day of protests in the agricultural sector that forces community institutions to react. The European Commission proposed this Wednesday to extend the suspension of tariffs on Ukrainian exports until June 5, 2025. However, its approach includes some safeguards with which it attempts to respond to the concerns of rural areas, as well as those expressed by Poland, Romania, Bulgaria, Slovakia and Hungary due to the pressure of Ukrainian grain on local markets. Is.
The College of Commissioners has proposed a one-year extension of tariff exemptions on Ukrainian imports until June 2025. Brussels has proposed to renew for another year until 2025 the tariff suspension on imports from Moldova in effect from July 2022. Such measures were implemented primarily with the intention of supporting Kiev following a Russian military invasion. And its purpose is primarily to guarantee the production of grains from what is considered the breadbasket of Europe. However, the tariff exemption led to unrest in neighboring member states, Who saw how the prices of their local produce fell as markets were flooded with surplus.
In an effort to respond to such concerns, the Community Executive has put forward List some safety measures. One of them, as explained by Margaritis Schinas, Vice-President of the European Commission, will allow corrective measures to be taken in the event of significant disturbances in the EU market or in the markets of one or more Member States.
Other safety measures will affect more sensitive products such as poultry, eggs and sugar, and include a type of emergency brake that allows immobilization Imports at 2022 and 2023 levels. That is, if imports of these products exceed the average volume for 2022 and 2023, tariffs will be reimposed to ensure that these figures are not exceeded.
Farmers’ demonstrations have overwhelmed the main communal cities in recent weeks, which has much to do with the unrest caused by subsidies for Ukrainian exports in the region. The summit of EU leaders taking place this Thursday in Brussels will put the crisis of European agriculture into the hands of French acting president Emmanuel Macron, who will propose that a part of the financing for Ukraine, up to 2027, be endowed with 50,000 euros. Millions of euros have been allocated for the agricultural sector.
Poland, Romania, Bulgaria, Slovakia and Hungary announced last spring that they would ban imports of Ukrainian grain to protect their farmers. A measure rejected and rebuked by Brussels, believing that it puts the foundation of the single market, Free movement of goods between member states. The proposals from Brussels this Wednesday must be approved by the EU Council and the European Parliament before the indicated date arrives.
As Schinas pointed out, the measures announced this Wednesday not only represent “concrete support for Ukraine,” they also respond to the concerns of European actors and represent a boost to global food security. For his part, Maros Sefcovic, Executive Vice-President of the European Commission, has acknowledged that “European farmers are under pressure on several fronts”, among which he mentioned the increase in the cost of products or the decline in the price of grain, which A decline of up to 30% occurred throughout 2023.
The Slovak Commissioner gave more details in terms of the deterioration in the agricultural sector: the value of grain production fell. 20 billion in 2023 compared to 2022. Farmers’ incomes are declining and the future of agriculture in Europe requires investment and strategic dialogue to “avoid polarisation”. The sector not only weakens measures convenient for Ukraine, but also weakens the well-known nature restoration law, which, they believe, restrains their activity.
Ukrainian grain exports have also put pressure on future EU enlargement. The accession of Ukraine and Moldova has raised many reluctances, especially due to the redistribution of CAP funds to the agricultural sector, which would be to the detriment of the largest current beneficiaries (France and Spain among them) and in favor of Ukrainian production. However the emergence of a grain producer of such size brought condemnation as well as the threats it posed to existing community production.
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